Good luck, sibling. I used to be a supervisor at a mental health crisis service. I used to think I was the guy who would advocate for our clients and clinicians and always have their side. We built a good little team that worked hard and helped people. Then the pandemic happened, upper management became more involved and had ideas that either do not work in the trenches or do not work in the courtroom because they are not strictly legal (or kind - mental health laws often include removing a person's right to refuse treatment, to compel them into the hospital, and we were using that a lot for like bureaucratic purposes). It did get to the point where I was being asked to lie to our clinicians about why we were doing certain things and not able to answer their questions about why we weren't doing the good, obviously necessary thing.
And they outlawed humor - my boss was cool and good to work with, my boss's boss is probably the reincarnation of Kubla Khan. I wasn't allowed to joke in interviews from the first time I joked in one. One time a kid pulled a magnetic key lock off the wall and I made a little plaque something like, "The Illusion of Secirity, 2019, $3,000," or something. Roundly hilarious said all, and witty, except boss's boss who outlawed humor or non-work sign posting for the entire workplace.
Personally, I think humor is important to the workplace. And reminding people that what we do is important and people's lives and freedoms are entrusted to us. As a supervisor it was part of my role to maintain morale, and I thought I did until I myself was so unhappy I couldn't maintain my own morale.
I guess all that just to say: good on you, current supervisor! Thanks for looking out for your guys! I'm glad your boss agreed with you, your guys should be paid, but even the best boss (including yourself) is still subject to the whims of an amoral corporation, and no one will be more loyal to you than to the almighty dollar. I got out, cut and ran, took a 9k loss and a job in a neighboring County as a regular, direct service crisis clinician - I don't advise it if what you're doing is working, but it's survivable and it was the right choice for me.
Good luck.